The UK financial watchdog, the Financial Conduct Authority (FCA), concluded in 2024 that Market Financial Solutions (MFS) was compliant with money laundering rules, according to a review conducted by law firm DWF. This finding, known as a 'skilled person' review, gave MFS a 'clean bill of health' regarding its anti-money laundering (AML) controls. However, the FCA's current investigation into MFS, launched days after its collapse amid fraud allegations, focuses on potential failures in due diligence and ongoing customer monitoring.

The regulator's probe follows the freezing of properties linked to MFS entities worth £185mn by the National Crime Agency. MFS's collapse has thrust the Mayfair-based lender, part of a group created by Paresh Raja that borrowed over £2bn for short-term property loans, into intense scrutiny. The FCA's 2024 review highlighted 'poor financial crime policies' across similar Annex 1 firms, which are not fully regulated but must comply with AML rules.

The FCA is now following up on these concerns, particularly regarding MFS's sister companies involved in a property scandal linked to a Bangladeshi politician.